DraftKings called by US authorities investigating lobbyist circles in New York
A New York lobbyist linked to the gaming industry is being investigated by federal regulators. U.S. Attorney's Office in southern district of New York is allegedly conducting an investigation through its public corruption unit Patrick Jenkins , according to the New York Times (NYT), but did not provide any detailed information on the motive behind the investigation. Jenkins, former associate of the present New York City, chairman of the assembly Carl E. Heastie supposedly has ties to DraftKings , FanDuel , NBA , MLB , The Stars Group and others, and at least two of his gambling customers have been summoned to court as part of an investigation.
Another political corruption scandal in New York
The NYT said Jenkins is a "longtime friend" of Heastie, pointing out that his practice, Patrick B. Jenkins & Associates, "flourished" during the Speaker's tenure. This company is associated with many individuals and political groups and is considered one of the most influential on the democratic political scene. Jenkins is reportedly not the target of an investigation, but subpoenas have been sent to many of his clients, including DraftKings and del Lago Resort & Casino . As with Jenkins, these entities do not appear to be under investigation, but may play a role in investigating a crime on the part of some senior government official in New York City. Communications between Jenkins and its customers, as well as all contracts, were also subject to a subpoena.
In addition to the game companies Jenkins is affiliated with, there are also a number of large companies operating in New York as well as the rest of the country. Among them are Uber, CVS Health, Charter Communications, Union of Orthodox Jewish Congregations of America, KPMG, Ernst & Young, and PricewaterhouseCoopers. However, no information has been released as to whether any of them received a summons. At least 24 of Jenkins' customers confirmed that they were not formally contacted as part of the investigation.
Jenkins and a history of questions
According to public sources, Jenkins was paid more than $ 3. 22 million n in compensation in 2019, a significant increase from $ 37, 500 received in 2014 . Heastie became the assembly speaker in 2015, and in 2016 his campaign paid Jenkins $ 4,000 a month. Some have linked the appointment to a salary. Jenkins has worked simultaneously as a lobbyist and political consultant, and while this is not illegal, it is a practice government regulators would rather not have.
A report published by the Times Union of Albany in 2019 accused Jenkins of providing work for democratic lawmakers, including fundraising while lobbying the New York State Legislature for his clients. He reportedly provided the campaign for free, but Jenkins said at the time that he always expected the lawmakers to pay. Jenkins has also previously worked for Representative Gregory W. Meeks as well as on the campaigns of former New York Governor Eliot Spitzer and his current Governor Andrew Cuomo.